Market is largely negative

The benchmark indices continued profit booking at higher levels. The Sensex was down by 504 points. Among sectors, buying interest was seen in selective auto and paint stocks, whereas the capital market index lost the most, shedding over 1 percent.

Technically, after a gap-down open, the market has been consistently facing selling pressure at higher levels. On intraday charts, it has formed a lower top, and on daily charts, it has created a bearish candle, which is largely negative.

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “We are of the view that, intraday, the market texture is weak, but a fresh selloff is possible only if the index dismisses the 85,000 level. If the market manages to trade above this level, it could bounce back to 85,500-85,800.

“On the flip side, below 85,000, selling pressure is likely to accelerate. If it falls below this level, the market could slip to 84,500-84,300.”

STOCK PICKS

BPCL | TRADE – BUY | CMP: Rs358.75 | SL: Rs345 | TARGETs: Rs372-Rs382

BPCL is forming a steady higher-low structure with strong support near Rs345. The stock is holding above its short-term averages, indicating improving trend strength. RSI is turning upward, suggesting a momentum pickup. A move above Rs362 can push the stock toward Rs372 and Rs382. Maintain SL at Rs345

Asian Paints | TRADE – BUY | CMP: Rs2,954.40 | SL: Rs2,890 | TARGETs: Rs3,020-Rs3,080

Asian Paints is attempting to break out from a narrow consolidation band. The stock has solid support near Rs2,890 and is showing early signs of strength on momentum indicators. A breakout above Rs2,970 may trigger an up-move toward Rs3,020 and Rs3,080. SL at Rs2,890

(Source: Riyank Arora, technical analyst at Mehta Equities)